Have a nominal value of $1 and are compulsory for all farmers who meet the following criteria:
- farm dairy cows in New Zealand
- sell milk to a New Zealand milk processor
- have an LIC participant code
- and buy at least $500 worth of qualifying LIC products and services in a year.
Qualifying products and services include:
See page 7 of the LIC Constitution for a full list of qualifying products and services.
Shareholding equivalent to 4% of your annual spend
The number of co-operative control shares you must hold is equivalent to 4% of your total annual LIC spend. If you spend $6250 on qualifying LIC products and services in a year, for example, you must hold 250 co-operative control shares.
We review the number of shares you hold in July each year and adjust the amount up or down depending on how much you spent in the previous 12 months. We’ll bill your LIC account for any additional shares or credit your account if your shareholding goes down.
Voting rights for co-operative control shareholders
Co-operative control shareholders are eligible to vote for the Board of Directors, the Shareholders Council and the Honoraria Committee. They can also vote on resolutions at the Annual Meeting.
Surrendering your shares
You can voluntarily surrender your co-operative control shares before the end of the season if you no longer qualify to hold them. This must be approved by the Board. We’ll reimburse you for the shares using a nominated bank account.
We will compulsorily redeem your shares if you no longer qualify for them at the time of the July annual share registry update. We’ll reimburse you for the shares by giving you a credit on your LIC account.
Co-operative Control Share Redemption Form
Transferring shares to a related party
You cannot sell your co-operative control shares or buy more than you are entitled to, but you can transfer them, together with your LIC participant code and your investment shares, to a related party. A related party is a person or an entity you have a relationship with. Related parties include family members. They can also include trusts, companies and partnerships.
If you change the form of your farming entity, you can transfer your LIC shares and participant code to the new entity.
Use the Related Parties Transfer Form to make the transfer.
Related Parties Transfer Form